Additional program of the ECB | 05 Junio 2020

EURUSD trading plan:

We are expecting a downtrend to develop. The Governing Council ECB decided to increase the envelope for the pandemic emergency purchase programme by €600 billion to a total of €1,350 billion. In response to the pandemic-related downward revision to inflation over the projection horizon, the PEPP expansion will further ease the general monetary policy stance, supporting funding conditions in the real economy, especially for businesses and households. The horizon for net purchases under the PEPP will be extended to at least the end of June 2021. This is a negative signal for the European currency!

Trading recommendation: Sell 1.1390 and take profit 1.1340.